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Home > My Tenant Filed Bankruptcy And Has Stopped Paying Rent. What Can I Do?

My Tenant Filed Bankruptcy And Has Stopped Paying Rent. What Can I Do?

When your tenant filed for bankruptcy, the court imposed what is known as an “automatic stay,” which stops creditors from continuing to take action against your tenant.

The problem for you is that from the bankruptcy court’s perspective, you are another creditor, so your actions are limited under the automatic stay.

If the tenant is otherwise in good standing with you and you have no reason to suspect that the property has been damaged or that the tenant is using illegal drugs on the property, you’ll want to talk to a lawyer who can go to the bankruptcy court and make a motion to lift the automatic stay.

It’s a very common circumstance, and bankruptcy judges usually grant the request within a few days. From there, you can proceed with the legal eviction process against your tenant.

The attorneys at Zelenitz, Shapiro & D’Agostino know how to help landlords recover their property when tenants seek bankruptcy protection.

Call us today at 718-599-1111 for a free consultation.